Stakeholder pressure for eco-friendly practices, international orientation, and eco-innovation: A study of small and medium-sized enterprises in Vietnam

Abstract

The literature on stakeholder management suggests that involving stakeholders in the decision-making process of firms is an ethical requirement and a valuable strategic resource for businesses to derive competitive advantage. However, the extent to which stakeholder pressure influences eco-product innovation lacks theoretical clarity. This article extends the eco-innovation literature by investigating the role of stakeholder pressure on eco-innovation through the mediating mechanism of environmental commitment. In addition, it examines the moderating impact of international orientation on the environment commitment–eco-innovation nexus. The results from a sample of 255 Vietnamese small and medium-sized enterprises (SMEs) indicate that the influence of both primary and secondary stakeholder pressure on eco-innovation is mediated by environmental commitment. In addition, the positive relationship between environmental commitment and eco-innovation increases with a firm's level of international orientation. The findings provide a nuanced understanding of the role of stakeholder in eco-innovation.